JOHANNESBURG (miningweekly.com) – Platinum junior Wesizwe, which will launch its 350 000 oz/y Frischgewaagd-Ledig project on July 4, would be looking to acquire a strong, local component of specialised skills over the next 12 to 18 months, joint-acting CEO Arthur Mashiatshidi told Mining Weekly Online.

Wesizwe would be looking to source strong technical skills for the project, which would involve the construction of a platinum-group metals mine on the farms Frischgewaagd portions 3, 4, and 11 and the farm Ledig portions 1 and 2.

“For this South African project, we would hope for a larger component of the skills to be sourced in the country. However, we also need to take into consideration that Wesizwe has a majority shareholder, who may also have views on where the skills may be sourced from,” Mashiatshidi said.

In May, the company issued more than 829.9-million new ordinary shares in equity funding to industrial and precious metals producer Jinchuan, the China-Africa Development Fund (CADFund) and Micawber.

The Jinchuan group and the CADFund have undertaken to provide $877-million in funding for the Frischgewaagd-Ledig project, and Wesizwe would receive $227-million in equity funding. The Chinese consortium has also committed to a $650-million debt facility.

CEO designate Jianke Gao said the company was finalising its structure internally with a view to bringing in the skills required.

Mashiatshidi also said the resourcing of both the Wesizwe Platinum owner’s team and that of the engineering, procurement and construction management (EPCM) were important, as were the establishment of project systems for procurement, financial management and quality assurance, among others.

He described the launch date as a “milestone”, and believed it would capitalise on the early works programme executed before the official launch date.

R58M ESKOM DEPOSIT

Wesizwe has paid the State-power utility Eskom a deposit of about R58-million.

It has also provided the required performance guarantees of around R31-million to enable the parastatal to commit to providing permanent power supply to the mine, in line with the requirements of the project.

Furthermore, the company is in discussion with Magalies Water Authority to ensure security of supply of bulk water.

Meanwhile, local minerals and mining project house TWP has been appointed the EPCM contractor for the first 12 months of mine development ending in June 2012.

Scope of work includes all project critical activities that would enable the project to start pre-sink preparation on the main and ventilation shafts in the first half of 2012.

The company has the option to renew this over the entire life of project execution.

Other key contracts would be awarded in the short term. The civils contractor would be appointed in the next four months, for the collaring on the main and ventilation shafts following the box cut excavations.

The shaft-sinking contractor would be appointed within six months from the start date of the project.

Other activities would include a complete refurbishment of all the winders, which are being stored on site, and securing final approval for bulk services, such as water and electricity.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.